Investor Releases

July 03, 2000

MATÁV (NYSE: MTA.N and BSE: MTAV.BU), the leading Hungarian telecommunications service provider hereby informs its investors that as provided in the shareholders' agreement between SBC Communications Inc. and Deutsche Telekom AG, SBC's 50% ownership in MagyarCom is being transferred to Deutsche Telekom in a transaction with a valuation based on MATÁV Rt's share price as of market close on June 30, 2000 The ownership change brings Deutsche Telekom's ownership in MATÁV to 59.53%, the remaining 40.47% stake is publicly traded while 1 Golden Share is with the State.

Elek Straub, Chairman and CEO of MATÁV commented on the transaction: ?Under the guidance of Deutsche Telekom and SBC-Ameritech, since its privatisation in the early nineties MATÁV has been transforming itself from an inefficient monopoly into a world-class telecommunications group. We will continue to build on the achieved results and the acquisition will not lead to any change in Matáv's strategy to maintain market and technological leadership. Our common goal remains to deliver profitable growth to our shareholders. We welcome the acquisition which clearly indicates Deutsche Telekom's strong commitment to Hungary and MATÁV. We look forward to continuing the close working relationships that MATÁV and Deutsche Telekom have built."

MATÁV is the principal provider of telecom services in Hungary and holds the national concession for national and international long distance telephony. MATÁV provides a broad range of services including telephony, data transmission, value-added services, and through its subsidiaries is Hungary's largest mobile telecom provider.